What Rightmove's Latest Mortgage Data Means for Home Buyers in Rugby

There is no shortage of things to think about when buying a home, but for most people, the monthly mortgage payment sits right at the top of that list. So the latest analysis from Rightmove will come as genuinely encouraging news for anyone looking to get on the ladder or move up it, particularly here in Rugby and the surrounding villages.

According to the data, the national average monthly mortgage payment in January 2026 stood at £1,592, which is £119 less than it was at the same point in 2025. That represents a year-on-year drop of around seven per cent, driven largely by a meaningful fall in average mortgage rates. The average two-year fixed rate came in at 4.23 per cent in January, compared with 4.99 per cent twelve months earlier. At the same time, national asking prices rose by just 0.5 per cent over the year to reach £368,031, meaning that more modest house price growth has helped to keep overall costs in check.

For buyers in our part of Warwickshire, the regional picture adds further context. The West Midlands saw average monthly mortgage payments of £1,260 in January, based on an average asking price of £291,422 — a year-on-year saving of £86 per month. Neighbouring East Midlands buyers, meanwhile, benefited from an even larger reduction of £100, with average payments falling to £1,214 on an asking price of £280,598. While these figures reflect broad regional averages rather than any single town, they do illustrate the direction of travel for anyone searching for a home in and around our area.

It is worth noting a slight caveat within the figures. Although buyers are considerably better off compared with January 2025, the national average monthly payment in January was actually £35 higher than it had been in December 2025, when average asking prices sat at £358,138. Seasonal fluctuations in asking prices are quite normal, January often sees a fresh wave of listings at slightly higher price points, but it is a useful reminder that timing can still play a role in what buyers end up paying.

First-time buyers, who are often the most sensitive to changes in affordability, will find particular encouragement in the latest numbers. The average asking price for a typical first-time buyer property was £225,544 in January, and the corresponding average monthly mortgage payment came in at £975, down from £1,062 a year ago. A 20 per cent deposit on that average price would amount to roughly £45,109. While deposits of that size remain a significant hurdle, the reduced monthly commitment may help some buyers feel more confident about taking that step.

Those who already own a property are also seeing improvements. The average remortgage rate in January was 4.32 per cent, a notable fall from 5.14 per cent the previous year. For buy-to-let investors, rates have similarly eased, dropping from 5.51 per cent to 4.84 per cent. Homeowners in Warwickshire approaching the end of a fixed-rate deal may therefore find that their options are more favourable than they might have expected.

Beyond the raw numbers, there are signs that confidence in the housing market is building. Rightmove's monthly confidence tracker, which surveys homeowners, renters, prospective first-time buyers and landlords, showed that net confidence among buyers and sellers in January returned to its highest level since September 2025. That growing sense of optimism tends to feed through into increased activity, more properties coming to market, more viewings, and ultimately more transactions completing.

For anyone thinking about buying a home in Rugby or the surrounding area, the current combination of lower mortgage rates, steady price growth, and improving confidence makes this an interesting moment to be exploring the market. Of course, every buyer's circumstances are different, and national or regional averages can only tell you so much about a particular street or property type. That is where local knowledge becomes invaluable.

At Ellis Brooke, we have over 30 years of combined experience helping buyers find the right home in our town and the villages nearby. Whether you are a first-time buyer trying to work out what you can afford or an existing homeowner considering your next move, we are always happy to have a conversation about your options. Get in touch with our team on 01788 221 242 or drop us an email at info@ellisbrooke.co.uk — we would love to help.